GCG’s Q4 2020 Middle Market M&A Update provides an overview of the latest trends in the market, including recent performance of select sectors and the state of the middle-market M&A environment.
Key findings include the following:
- GCG’s proprietary middle market industry sector performance index shows a sharp positive turn for small cap stocks vs the S&P 500 index. For over a year, each industry sector has trailed the S&P 500 index. That changed dramatically in the 4th quarter of 2020. While all sectors improved, Automotive, Technology and Consumer Goods actually posted returns for 2020 in excess of the S&P index.
- GCG’s small cap public company index finished the year with the highest revenue and EBITDA multiples for the year. EBITDA multiples increased 56 percent from April 2020 to December of 2020.
- Middle-market transaction volume for the 4th quarter of 2020 continues to accelerate and experienced the highest quarter of 2020. Transaction volume is up 88 percent from the 2nd quarter low. That said, volume in the 4th quarter of 2020 was still 10 percent lower than the 4th quarter of 2019.
- Overall, the 4th quarter saw a strengthening of deal volume and deal value for the middle-market. While the 4th quarter continued the positive trend in M&A, there are still choppy waters in the M&A environment.
Click here for the full update.